Nutricosmetics are oral-based nutritional supplements for beauty and skin health. The nutricosmetics market is primarily driven by the expansion and consumer awareness of personal grooming coupled with the busy lifestyle of ever-growing urban population. Nutricosmetics are health products mainly used for the treatment of hair, nail, and skin defects and sun protection. Micronutrients such as carotenes, flavonoids, and omega-3 fatty acids present in nutricosmetics also provide protection from ultraviolet light exposure and reduce the aging of the skin and wrinkle formation. Some of the key drivers expected to fuel the Indonesia nutricosmetics market growth are rising retail shops across the globe, popularity of ready-to-drink nutricosmetics beverages, preference for effective and safe beauty solutions boosting the sales of cosmetics supplements, consumer awareness about the prevention of pre-mature skin aging, and others.
Indonesia nutricosmetics market is projected to surpass US$ 561.7million by the end of 2028 and is expected to exhibit a CAGR of 17.1% during the forecast period (2021 to 2028).
Nutricosmetics are nutritional supplements that can be consumed orally and are used to maintain the aesthetic beauty and skin health while protecting the body against various physical defects. Nutricosmetic products constitute of active ingredients that provide an important linkage between the well-being and aesthetic properties of nutritional ingredients. The increasing acceptance of ready to drink nutricosmetic refreshments and easily consumable pills coupled with an inclination towards effective and harmless beauty solutions is expected to augment the market growth.
Increasing awareness regarding the ‘beauty from within’ concept has led to the increasing sales of nutricosmetics in the country. For instance, according to an Indonesia’s gummy supplement start-up, YOU, the sales of its adults and kids’ multivitamins nearly tripled amid the coronavirus outbreak, as people recognize vitamins as the means of preventive healthcare.
Higher costs of nutricosmetics is a major hindrance for the growth of Indonesia nutricosmetics market. The large scale commercialization and use of conventional cosmetics is the biggest competition to Indonesia nutricosmetics market. The effects of conventional cosmetics are immediate as compared to nutricosmetics. This proves to be another major factor that impacts the Indonesia nutricosmetics market growth.
According to Coherent Market Insights analysis, Indonesia has the largest Muslim population in the world. Local cosmetic manufacturers can use halal certification to grow their market share in overseas markets, in addition to giving them a competitive advantage over global brands in the domestic market. According to Global Business Guide Indonesia – 2018, in 2017, the Indonesian government implemented a halal product assurance regulation as a derivative regulation of Law No. 34/2014 on Halal Product Assurance, which increased demand for halal cosmetics even more. Rising middle-income consumers coupled with their increasing purchasing power is expected to drive the demand for halal products. According to the Government of Indonesia, the total spending on halal food and beverage products reached US$ 214 billion in 2018, which was 10% of the world’s halal products market in 2018. Moreover, the government is focused on boosting the growth of the Indonesian halal industry by easing access and cutting the cost of halal certification for micro and small businesses. In October 2019, the government implemented Halal Product Assurance Law No. 13/2014, requiring mandatory halal certification for all products that are halal. This is expected to drive demand for halal cosmetic products over the forecast period.
Figure 1. Indonesia Nutricosmetics Market – Opportunity Analysis
Consumers in Indonesia are increasingly concerned about their health and wellness, directing their focus on ingredients used in various beauty products. Increasing demand for natural or organic products is thus expected to drive the market growth over the forecast period. According to Global Organic Trade Guide, the organic products market across Indonesia was valued at US$ 13.9 million in 2019.
|Base Year:||2020||Market Size in 2020:||US$ 159.1 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||17.1%||2028 Value Projection:||US$ 561.7Mn|
Amway Corporation, BASF SE, ExcelVite Sdn. Bhd., Functionalab Group, Glaxosmithkline Plc., Innéov Spain SA, LycoRed Ltd., PT. Vitabiotics Indonesia, Swisse Wellness PTY Ltd., and YOUVIT.
|Restraints & Challenges:||
Figure 2. Indonesia Nutricosmetics Market Revenue Share (%), By Product Type, in 2020
Key Takeaways of the Graph:
Indonesia Nutricosmetics Market - Impact of Coronavirus (COVID-19) Pandemic
The coronavirus outbreak in the country has severely impacted its economy. Most of the industrial sectors have been hit hard by the pandemic. Workers in both formal and informal sectors have lost their jobs. According to a report, Indonesia and COVID-19 – Impact on Private Sector, published by the United Nations, workers in manufacturing and education & training experienced the most significant negative impact, affecting around 60% of workers who either had their pay cut and worked same hours or reduced hours of work. This has led to less consumer spending on non-essential products such as beauty products. This is expected to affect Indonesia nutricosmetics market during the pandemic.
According to the World Bank, in November 2020, 50% of households in Indonesia reduced the consumption of non-essential products such as beauty product to cope up with the pandemic effect. On an average, households reduced 30% and 40% of their usual pre-pandemic monthly food and non-food expenditure, respectively. According to the same source, 50% of households relied on assistance or borrowing from friends or family to meet their basic needs. Furthermore, 23% of households reported food shortages while 29% reported eating less.
Major players operating in Indonesia Nutricosmetics Market, include Amway Corporation, BASF SE, ExcelVite Sdn. Bhd., Functionalab Group, Glaxosmithkline Plc., Innéov Spain SA, LycoRed Ltd., PT. Vitabiotics Indonesia, Swisse Wellness PTY Ltd., and YOUVIT.
The expansion and consumer awareness of personal grooming, as well as the busy lifestyles of Indonesia's growing urban population, are driving the market for nutricosmetics in the country. Nutricosmetics are health products mainly used for the treatment of hair, nail, skin defects, and photoaging and sun protection. Photoaging is a type of aging mainly caused due to the exposure to ultraviolet (UV) light which causes brown spots and deep wrinkles.
The rising penetration of cosmetic products in the country also supports the Indonesia nutricosmetics market growth. For instance, according to the Indonesia's National Agency of Drug and Food Control (BPOM RI), over 33,823 registered cosmetic products were sold in the country in September 2017.
Some of the key drivers fueling the nutricosmetics market growth are rising retail shops across the globe, growing consumer awareness about the prevention of pre-mature skin aging, and others. The growing availability of nutricosmetics due to the rising popularity of e-commerce is another major driver for the Indonesia nutricosmetic market.
There is a lack of clear and definitive regulatory structure for nutricosmetics, which creates a safety concern among consumers. This is expected to hamper the market growth. The nutricosmetics market is also slowed down by outdated regulations in the country. The National Agency of Drug and Food Control still uses references from Health Supplements 2005 rules which has not been updated with respect to permitted claims or ingredients. Furthermore, there are restrictions on the use of new ingredients which is expected to hamper the market growth.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective.